Outsourcing property management is costly. You can easily spend 7-10% of your weekly rent on agent's fees. So doing it yourself will save you a lot of money. Period. The savings can quickly add up and contribute to your ultimate financial goals.
Self-management gives a landlord more control not only over their properties but their tenants. It allows you to be in the centre of things. You will always know what's happening with your property and what requires your attention. You can never care too much. Taking the DIY route will allow you to keep a closer eye on your properties.
Previous bad experience with a property manager
A lot of landlords (especially the ones still learning the ropes) choose to use a professional property manager to look after their rentals. Some eventually turn to self-management after feeling that the agent was not looking after their properties as well as they should, charging too much, or hitting them with extra fees for things like tradie calls.
Better relationship with tenants
Preventative measures are often better than reactive. Establishing a good relationship with your tenants lies in the heart of successful property management. You have to be fair. You need to address any requests quickly. And you need to fix maintenance problems as soon as you can. The better you look after your tenants, the more likely they will look after your property better.
It's important to remember that a good working relationship can be achieved only if you select the right tenants for your property. Selection of quality tenants will result in lack of vacancy and potential Tribunal issues. Remember that it takes days to select applicants and move them in, but it may take weeks and months sometimes to move them out. So it pays to spend extra time and money advertising property properly to the biggest audience and run proper background checks on potential tenants.
Are you thinking of taking a DIY route?
Don't get overwhelmed. Self-managing doesn't need to be hard as long as you have a professional property management system in place to keep track of rent, maintenance, inspections. Take baby steps, ask for help. Thousands of NZ landlords are doing it, and you can do it, too.